For the better part of its history, Pasadena-based fast-food company Wetzel’s Pretzels has made its money by selling pretzels, hot dogs and lemonade in shopping malls across the nation.

But it’s now expanding outside of shopping malls by creating standalone locations. The new concept, called Twisted by Wetzel’s, has already launched at two locations in suburban neighborhoods in Orange County and Phoenix.

Twisted stores are generally 1,200 to 1,500 square feet in size with seating, the mall stores are closer to 500 or 1,000 square feet and kiosks are generally under 250 square feet in size. Twisted stores also have more food offerings.

The new Twisted locations are part of the company’s push to open 50 locations in the next year. And a handful of them will be the new Twisted concept, while 10 will be the traditional mall stores. The remainder will be in Walmarts and Macy’s and on food trucks.

The 50 new stores would be in addition to Wetzel’s existing 370 locations, 10% of which are company-owned locations. The rest are franchised locations. 

According to Wetzel’s Pretzel’s Chief Marketing Officer Kim Freer, the Twisted stores are an adjustment to new market trends. 

“As we continue to grow and reflect on the business, we’ve seen…(that) consumer trends have changed in the way we’re all eating more snacks throughout the day and less square meals as we’ve all become more busy.” 

Although Freer noted that the company doesn’t plan to do away with its mall-based locations, Twisted is intended to act as a way for Wetzel’s to take advantage of franchising opportunities outside of malls while retaining its fun and fast brand identity.

Kristen Walker, a professor of marketing and the MBA director of the Nazarian Business School at California State University – Northridge, called the move by the company “the smartest thing for them … it’s not necessarily a rebrand; the extension is a safe way to test out markets and acquire new customers without losing existing (ones).”

Going hand in hand with this is how Wetzel’s is approaching the marketing behind Twisted to leverage Wetzel’s brand name and legacy while modernizing it to be appealing to younger generations, specifically millennials and Generation Z. The new stores feature bright interiors and colors that encapsulate Twisted’s branding objectives. As for the food, Freer said the company worked with The Culinary Edge, a restaurant-innovation agency based in San Francisco, to develop a menu that revamps Wetzel’s trilogy of pretzels, hot dogs and lemonade to include different dips, drizzles, fillings and toppings. It also adds other foods, including ice creams and mangonadas (a type of ice-blended mango drink). 

According to Freer, the most popular menu items, though, are Twists: small, braided loaves of pretzel dough stuffed with cheese and other fillings. 

“It’s meal-worthy, snack-worthy, has a great cheese-pull, and is fun to eat. Specifically, what’s called the ‘Pizza Bomb’ is the most popular,” she remarked.

Commenting on the marketing aspect of the new menu, Walker claimed, “You can either try to come up with something that’s attractive or try to rebrand. Wetzel’s is trying to do the best of both worlds (by) coming up with an innovative product offering while … rebranding.”

Cristel Russell, a professor at Pepperdine University’s Graziadio Business School, agreed.

“There’s sometimes something called the halo effect, (which is when) you bring some of the aura from an existing brand into an extension of it. So, I think by the general definition (this expansion) would be advantageous,” Russell said.

Company breakdown

Currently, mall locations make up around 75% of Wetzel’s shops, with the other 25% being made up of food trucks, pop-ups, new Twisted locations, and miscellaneous forms. Looking to the future, the company, which was founded in 1994 in Redondo Beach by Bill Phelps and Rick Wetzel, plans to develop only one more Twisted location this calendar year, which will be in Orange County.

Its first Twisted location is company-owned, as will be the Orange County location opening later this year. More franchise Twisted locations will open as well. 

Freer said the company hopes to eventually build Twisted up so that it’s as easy and cost-efficient to open stand-alone locations as it is to open mall-dependent ones by developing the locations on university campuses, shopping centers and suburban college town settings. 

Walker said it can potentially be costly to build stand-alone restaurants. 

“(At malls) you’re renting a space, and that rent comes with a lot of benefits; the mall is doing a lot of the marketing, the mall has parking, and the other stores that are located nearby create foot traffic. A stand-alone location can be very effective if you pick the right location. But depending on where it is, it can be very expensive,” Walker said. 

Adding to the notion of establishing Twisted locations on university and college campuses specifically, Russell said that it’s a sensible tactic given that students tend to develop their own preferences independent of their upbringing during their time in university. She also commented that college campuses provide consistent foot traffic, a large market of potential employees and easy access for consumers who may want to return on a regular basis. 

All in all, Wetzel’s Pretzels isn’t entirely sure if Twisted will become the predominant way it sells pretzels, but the company is hopeful about the future, given the concept’s initial success. 

Freer said that regardless, the company’s mission is the same. 

“We’re about delivering what we call hand-held happiness. So, for us it’s about delighting the guests and providing them with a quality experience and quality food to achieve that,” she said.